Sensex today: In a volatile trading session on Thursday, the benchmark indices pared all gains to settle in red with the Nifty50 ending below its crucial 10,150 mark as shares of PSU banks and those from realty sector put pressure on the indices. The Sensex ended at 33,006, down 129.91 points, while the broader Nifty50 closed at 10,114, down 40 points. In the broader market, the BSE Midcap and the BSE Smallcap indices underperformed to shed up to 1 per cent. Market breadth, indicating the overall health of the market, turned negative. On the BSE, 713 stocks rallied, 2,007 stocks declined, while 138 stocks remained unchanged.

Worries about a potential trade war between China and the United States kept gains in Asian shares in check. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 percent, with South Korea's Kospi hitting six-week high, while Japan's Nikkei gained 0.2 percent.

The US Federal Reserve raised interest rates on Wednesday and forecast two more hikes for 2018 in its first policy meeting under new Fed Chairman Jerome Powell.

Given some investors had expected it to project three more rate hikes, the guidance was perceived by some as less hawkish than anticipated, a positive factor for risk asse

On Wednesday, the Sensex ended at 33,136, up 139 points while the broader Nifty50 index settled at 10,155, up 31 points.

Latest Updates

Thu, March 22, 2018, 15:56 PM

Vinod Nair, Head of Research, Geojit Financial Services

Market started on a positive note on account of less hawkish FED commentary on CY18 rate hike trajectory and in turn US 10 year yield declined. However, the gains were only short lived due to negative trend in European and other Asian market owing to re-emergence of trade war. Investors are utilizing every rally as an opportunity to sell and market has come back to the 200DMA due to concern on domestic credit growth and liquidity crunch.

Thu, March 22, 2018, 15:33 PM

Sectoral trend at close

All but Metal index (up 0.3 per cent) ended in red.

Source: NSE

Thu, March 22, 2018, 15:31 PM

Markets at close

The Sensex ended at 33,006, down 129.91 points, while the broader Nifty50 closed at 10,114, down 40 points. In the broader market, the BSE Midcap and the BSE Smallcap indices underperformed to shed up to 1 per cent.

Thu, March 22, 2018, 15:29 PM

Sensex heatmap at close

Source: BSE

Thu, March 22, 2018, 13:40 PM

Buzzing stock: Hindustan Construction Company

Hindustan Construction Company (HCC) tanked 15 per cent to hit its 18-month low of Rs 24.60, following media reports that the company’s subsidiary Lavasa Corporation is headed for bankruptcy. Lavasa Corporation, a unit of HCC that's developing it, is considering approaching the National Company Law Tribunal (NCLT) owing to challenges faced in raising money for project completion, DNA reported.

Thu, March 22, 2018, 10:59 AM

Buzzing stock: Sun Pharma

Shares of Sun Pharmaceutical Industries rallied over 3 per cent to Rs 521.90 after India’s largest drug maker said it has received US FDA approval for its much-awaited psoriasis drug Ilumya. Ilumya generically called as tildrakizumab-asmn falls in the category of specialty drugs - medications that treat complex or rare diseases such as cancer, autoimmune disorders, skin conditions among others.

Thu, March 22, 2018, 09:43 AM

Buzzing stock: ITI

Shares of ITI rallied as much as 6.8 per cent after the Cabinet on Wednesday cleared selling of 18 crore equity shares of ITI through a follow on public offer (FPO), which will help the telecom PSU meet the minimum 25 per cent public shareholding norm. Market regulator Securities and Exchange Board of India (SEBI) had mandated a minimum 25 per cent public float for all listed companies. The deadline for PSUs to achieve the minimum public float will end in August.

Thu, March 22, 2018, 09:39 AM

HDFC Securities on US Fed policy move

We read the US Fed commentary as neutral to positive for the markets for the following reasons:

Relief that only two hikes are expected this year

Surprisingly the inflation number has not been revised upwards.The Fed kept its inflation forecast for the next two years the same even though it sees a stronger economy and falling unemployment rate. The central bank predicted inflation as measured by its preferred PCE gauge would average 1.9% in 2018 and 2% in 2019. We, therefore, will take the incremental hike dot-plot is indicating for 2019 with a pinch of salt. If inflation does not pick up, it will be difficult for the Fed to walk its talk on rates.

Despite the rate hike, the real interest rates are still negative. Going by the Fed’s own PCE estimates of 1.9% or 2018, the real rates are a minus 0.15% (1.90 – 1.75) If you take the CPI of 1.5%, the real rates are still 0.25%.

History has shown that unless the real interest rates rise beyond 2.5% the markets can very well take these hikes into stride. So we are not worried by the three hikes in 2019.

The bond and the currency markets are better readers of the Fed move. The yield on the 10-year U.S. Treasury closed at 2.883% after rising to 2.93%. The U.S. Dollar Index also weakened after the Fed decision, trading 0.8% lower at 89.710. Going by the Fed’s own PCE estimates of 1.9% or 2018, the real rates are a minus 0.15% (1.90 – 1.75) If you take the CPI of 1.5%, the real rates are still 0.25%.

History has shown that unless the real interest rates rise beyond 2.5% the markets can very well take these hikes into stride. So we are not worried by the three hikes in 2019.

The bond and the currency markets are better readers of the Fed move. The yield on the 10-year U.S. Treasury closed at 2.883% after rising to 2.93%. The U.S. Dollar Index also weakened after the Fed decision, trading 0.8% lower at 89.710.

The takeaway for our markets:

The near term implications of the Fed policy are less hawkish than what the markets had pencilled in.

Our markets will open in the green this morning.

The current rate hike will not pressurise the RBI to hike rates.

Thu, March 22, 2018, 09:20 AM

Sectoral trend

Nifty PSU Bank was the leading sectoral loser among NSE indices.

Source: NSE

Thu, March 22, 2018, 09:18 AM

Nifty outlook by Angel Broking

Wednesday's low of 10,132 would be seen as an important support for the coming day. A sustainable breach below this level would trigger some selling to retest 10,075 – 10,033 levels. On the higher side, 10,195 followed by 10227 are likely act as intraday hurdles. Since, we are approaching the truncated expiry week; traders are advised to keep a close track of mentioned levels as we would see some expiry factor playing out in next 3 – 4 days.

Thu, March 22, 2018, 09:17 AM

Market update

At 9:30 am, Sensex was trading at 33,210, up 74 points, while the broader Nifty50 was ruling at 10,182, up 27 points.

Thu, March 22, 2018, 09:17 AM

Volatility index

India VIX eased nearly 3 per cent to 14.68.

Thu, March 22, 2018, 09:12 AM

Top gainers/losers

Sun Pharma (up 2 per cent), ONGC (up 1.5 per cent) and Tata Motors (up 1 per cent) were the top gainers, while Wipro (down 1 per cent), Bharti Airtel (down 0.8 per cent) and NTPC (down 0.7 per cent) shed the most.